India Economic Survey Complete for the year of 2022 to 2023
Hyde Park Capital Technology Report
1. HYDE PARK CAPITAL Investment Banking | Mergers & Acquisitions | Capital Raising
John Hill
Senior Managing Director
hill@hydeparkcapital.com
(813) 383-0205
John McDonald
Senior Managing Director
Technology
mcdonald@hydeparkcapital.com
(813) 383-0206 M&A Report
Keith Hodgdon Q2 2012
Senior Vice President
hodgdon@hydeparkcapital.com
(813) 383-0208
Jeffrey Bridge
Vice President
bridge@hydeparkcapital.com
(813) 383-0204
Michael Mariani
Associate
mariani@hydeparkcapital.com
(813) 597-2649
Jennifer Paul
Associate
paul@hydeparkcapital.com
(813) 383-0203
Hyde Park Capital Advisors, LLC
701 N. Franklin Street
Tampa, FL 33602
Tel: 813-383-0202
www.hydeparkcapital.com
Member FINRA/SIPC
2. Capital Markets Overview
Commentary Select Initial Public Offerings – Technology (Q2 2012)
($ in millions) Transaction
As of June 30, 2012 major market indices including the S&P 500 Offer Date Issuer Industry Sector Value
and Nasdaq, increased 3.1% and 5.8%, respectively, over the 12- 05/17/12 Facebook, Inc. (NasdaqGS:FB) Internet $16,007
month period, while the S&P Global Information Technology index
outperformed the overall market, increasing 6.1% over the same 04/18/12 Splunk, Inc. (NasdaqGS:SPLK) Software $230
period.
06/28/12 ServiceNow, Inc. (NYSE:NOW) Software $210
Technology companies continue to account for the majority of the
initial public offerings (“IPOs”) in the U.S. As detailed in the table on 04/19/12 Infoblox, Inc. (NYSE:BLOX) Software $120
the right, eight IPOs were completed by companies in the
Technology industry during Q2 2012, including the anticipated 05/09/12 Audience, Inc. (NasdaqGS:ADNC) Technology Hardware $90
debut of Facebook, Inc.
04/19/12 Proofpoint, Inc. (NasdaqGM:PFPT) Software $82
The Software-as-a-Service (SaaS) sector was the strongest
performing sector in terms of valuation during the 2nd quarter, 04/24/12 Envivio, Inc. (NasdaqGS:ENVI) Software $70
trading at LTM revenue and EBITDA multiples of 4.0x and 23.7x,
06/28/12 Exa Corp. (NasdaqGM:EXA) Software $63
respectively.
Public Market Performance (LTM) Market Performance by Sector
130%
Median
120% Change in Stock Price Enterprise Value / LTM
6.1%
Industry Sector 3 Months 12 months Revenue EBITDA
110% Enterprise Software (5.6%) (5.4%) 3.4x 11.5x
5.8%
Software-as-a-Service (SaaS) (7.3%) 0.3% 4.0x 23.7x
100%
3.1% Infrastructure Software (11.4%) (5.8%) 3.1x 12.4x
90% Informatics & Data Services (6.7%) (6.0%) 2.4x 10.1x
Internet (1.5%) 9.3% 1.9x 10.6x
80%
IT Services (9.2%) (7.4%) 1.4x 9.1x
70% Technology Hardware (10.1%) 19.8% 0.8x 5.5x
Jun-11 Sep-11 Dec-11 Mar-12 Jun-12
Nasdaq S&P 500 S&P Global Information Technology Index
Source: S&P Capital IQ
HYDE PARK CAPITAL 2
Investment Banking | Mergers & Acquisitions | Capital Raising
3. Annual Middle Market M&A Activity – Technology
Commentary Middle Market Purchase Multiples
As detailed in the charts below, overall U.S. middle market M&A 35.0x 3.5x
activity, or deal volume, in the Technology industry decreased in the
30.0x 3.0x
1st half of 2012 to 117 closed transactions, a 32% decrease from 1H 2.6x
2.8x
2.6x
2011.
Enterprise Value / Revenue
Enterprise Value / EBITDA
2.5x
25.0x 2.4x 2.4x 2.5x
2.3x 2.3x 2.3x
During 1H 2012 the total value of completed M&A transactions in 20.0x 1.8x
1.9x
2.0x
the Technology industry dropped 30% to $15.7 billion from $22.4
billion in the prior year period. 15.0x
32.2x
1.5x
25.8x 26.4x
23.0x
Despite the decline in M&A activity, transaction pricing or purchase 10.0x 19.9x
21.5x
1.0x
18.2x 17.5x
multiples, defined as Enterprise Value over revenue and Enterprise 13.6x
16.5x 15.7x
Value over EBITDA, remained strong from a historical perspective 5.0x 0.5x
at an average of 2.8x and 17.5x, respectively, for completed middle
market transactions across the Technology industry in the 1st half of 0.0x
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1H 2012
0.0x
2012. EV / EBITDA EV / Revenue
U.S. Middle Market M&A Activity – Annual Trends: VOLUME U.S. Middle Market M&A Activity – Annual Trends: VALUE
Total Transaction Value ($ in billions)
Total Transaction Volume
Less than $100M $100 - $499M $500 - $1,000M Less than $100M $100 - $499M $500 - $1,000M
Source: S&P Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion)
HYDE PARK CAPITAL 3
Investment Banking | Mergers & Acquisitions | Capital Raising
4. Quarterly Middle Market M&A Activity – Technology
Commentary Middle Market M&A Transactions by Deal Size – Technology
As detailed in the table on the right, Technology M&A transaction ($ in billions)
volume and value decreased year-over-year across all segments of
the middle market during the 2nd quarter of 2012. Q2 2011 Q2 2012 % Change
Deal Size Volume Value Volume Value Volume Value
The total volume of completed middle market Technology deals Less than $100M 50 $1.7 39 $1.4 (22%) (17%)
(transactions valued at less than $1 billion) declined 30% in Q2 $100 - $499M 27 $6.2 14 $3.1 (48%) (50%)
2012 versus the prior year period, while total middle market deal $500 - $1,000M 5 $3.6 4 $3.1 (20%) (16%)
value fell 34% to $7.6 billion during the quarter. Total Middle Market 82 $11.5 57 $7.6 (30%) (34%)
% of Total Market
Transactions valued at less than $100 million represented Less than $100M 61% 15% 68% 19%
approximately 68% of the total number of closed deals in Q2 2012. $100 - $499M 33% 53% 25% 41%
$500 - $1,000M 6% 32% 7% 40%
Despite representing less than 35% of the total deal volume in Q2 Total Middle Market 100% 100% 100% 100%
2012, transactions valued between $100 million and $1 billion
accounted for more than 80% of the total deal value during the
quarter.
U.S. Middle Market M&A Activity – Quarterly Trends: VOLUME U.S. Middle Market M&A Activity – Quarterly Trends: VALUE
Total Transaction Value ($ in billions)
Total Transaction Volume
Less than $100M $100 - $499M $500 - $1,000M Less than $100M $100 - $499M $500 - $1,000M
Source: S&P Capital IQ (middle market includes all closed deals with disclosed deal value between $10 million and $1 billion)
HYDE PARK CAPITAL 4
Investment Banking | Mergers & Acquisitions | Capital Raising
5. Recent M&A Activity – Technology
Select Announced M&A Transactions (Q2 2012)
Enterprise EV / EV /
Announced Date Target Industry Sector Buyer Value ($mm) Revenue EBITDA
06/28/2012 Open E Cry, LLC Internet GAIN Capital Group $12.0 0.9x NA
06/27/2012 Active Internet Technologies, LLC Internet Spectrum Equity Investors $55.0 NA NA
06/25/2012 Quest Software, Inc. Software Dell, Inc. $2,407.7 2.7x 15.0x
Fidelity National Information Services, Inc.
06/25/2012 Software Lightyear Capital $335.0 NA NA
(Healthcare Benefit Solutions Business)
06/21/2012 Savings.com, Inc. Internet Cox Target Media, Inc. $100.0 NA NA
06/21/2012 Brand.net, Inc. Internet Valassis Communications, Inc. $18.0 NA NA
06/20/2012 Wavelink Corp. Software LANDesk Software, Inc. $82.0 NA NA
06/18/2012 Network Engines, Inc. Technology Hardware UNICOM Systems, Inc. $55.3 0.2x 5.1x
06/18/2012 Network Equipment Technologies, Inc. Technology Hardware Sonus Networks, Inc. $42.4 0.8x NM
06/15/2012 Yammer, Inc. Internet Microsoft Corp. $1,200.0 NA NA
06/13/2012 SinglePlatform Corp. Internet Constant Contact, Inc. $95.0 NA NA
06/13/2012 Integrated Export Systems, Ltd. Software The Descartes Systems Group, Inc. $34.2 NA NA
06/12/2012 GlobalSpec, Inc. Internet HIS, Inc. $135.0 NA NA
06/11/2012 Vital Support Systems, LLC IT Services TDS Hosted & Managed Services, LLC $45.0 0.6x NA
06/07/2012 Bytemobile, Inc. Internet Citrix Systems International Gmbh $435.0 NA NA
06/05/2012 PlanetSoft, Inc. Software Ebix, Inc. $40.0 NA NA
06/04/2012 Buddy Media, Inc. Internet Salesforce.com $745.0 NA NA
06/01/2012 Nascent Systems, LP IT Services Perficient, Inc. $18.1 1.1x NA
05/30/2012 Clarus Systems, Inc. Software OPNET Technologies, Inc. $11.7 NA NA
05/29/2012 LeCroy Corp. Technology Hardware Teledyne Technologies, Inc. $291.7 1.5x 8.9x
05/24/2012 PowerReviews, Inc. Software Bazaarvoice, Inc. $127.8 11.1x NA
05/22/2012 Ariba, Inc. Software SAP AG $4,411.4 8.8x NM
05/22/2012 EDGAR Online, Inc. Internet R.R. Donnelley & Sons Co. $71.2 2.3x NM
05/14/2012 Tii Network Technologies, Inc. Technology Hardware Kelta, Inc. $28.1 0.5x 11.1x
05/11/2012 Xedar Corp. Software HIS, Inc. $28.0 NA NA
05/10/2012 Spectralink Corp. Technology Hardware Sun Capital Partners $114.0 1.2x NA
05/09/2012 AssetNation, Inc. Internet Ritchie Bros. Auctioneers, Inc. $64.0 NA NA
05/07/2012 Anue Systems, Inc. Technology Hardware Ixia $145.0 3.0x NA
05/07/2012 SpeechCycle, Inc. Internet Synchronoss Technologies, Inc. $38.0 NA NA
Source: S&P Capital IQ
HYDE PARK CAPITAL 5
Investment Banking | Mergers & Acquisitions | Capital Raising
6. Recent M&A Activity – Technology
Select Announced M&A Transactions (Q2 2012)
Enterprise EV / EV /
Announced Date Target Industry Sector Buyer Value ($mm) Revenue EBITDA
05/07/2012 GTSI Corp. Distributors UNICOM Systems, Inc. $18.8 0.1x 3.3x
05/03/2012 SlideShare, Inc. Internet LinkedIn Corp. $72.1 NA NA
05/03/2012 Avista Solutions, Inc. Software Davis + Henderson Corp. $40.0 NA NA
05/02/2012 RentJuice Corp. Internet Zillow, Inc. $37.4 NM NM
05/01/2012 EasyLink Services International Corp. Internet Open Text Corp. $309.5 1.7x 7.3x
05/01/2012 Funzio, Inc. Internet GREE International, Inc. $210.0 NA NA
05/01/2012 nLayer Communications, Inc. Internet Global Internetworking, Inc. $18.0 1.2x NA
04/30/2012 Fox Enterprises, Inc. Distributors Integrated Device Technology, Inc. $30.0 1.3x NA
04/27/2012 Demandforce, Inc. Internet Intuit, Inc. $423.5 NA NA
04/25/2012 Inflection, LLC (Archives.com) Internet Ancestry.com, Inc. $100.0 NA NA
04/24/2012 Cray, Inc. (Interconnect Hardware Assets) Technology Hardware Intel Corp. $140.0 NA NA
04/23/2012 Peer39, Inc. Internet MediaMind Technologies, Inc. $15.6 NA NA
04/20/2012 MU Dynamics, Inc. Software Spirent Communications Plc. $40.0 NA NA
04/17/2012 SRS Labs, Inc. Software DTS, Inc. $113.2 3.4x NM
Openwave Systems, Inc. (Mediation and
04/16/2012 Internet Marlin Equity Partners $49.6 NA NA
Messaging Product Businesses)
04/10/2012 Elo Touch Solutions Technology Hardware The Gores Group $380.0 0.9x NA
04/09/2012 Instagram, Inc. Internet Facebook, Inc. $1,000.0 NA NA
04/05/2012 Automation Technology, Inc. Internet Intertek Group plc $16.0 NA NA
04/04/2012 DRI Corp. Software Luminator Holding, LLC $25.3 0.3x NM
04/03/2012 LogLogic, Inc. Software TIBCO Software, Inc. $131.6 NA NA
Average $293.0 2.2x 8.4x
Median $71.2 1.2x 8.1x
Source: S&P Capital IQ
HYDE PARK CAPITAL 6
Investment Banking | Mergers & Acquisitions | Capital Raising
7. Recent M&A Transactions Profiled – Technology
Ariba, Inc. (NasdaqGS:ARBA) Transaction Details
Ariba, Inc. (NasdaqGS:ARBA) is a leader in cloud-based, Financial Profile Transaction Analysis
collaborative business solutions for spend management, finance ($ in millions)
LTM
management and sales acceleration management. Income Statement 3/31/12 Purchase Price (Equity) $4,598.6
On May 22, 2012 SAP AG (DB:SAP), one of the largest developers of Revenue $501.8 Total Rights/Warrants/Options $9.1
enterprise software, entered into an agreement to acquire Ariba for
$45.00 per share of common stock in an all–cash transaction, EBITDA $40.9 Net Assumed Liabilities ($196.4)
implying an enterprise value of approximately $4.4 billion for Ariba. Net Income ($8.8) Implied Enterprise Value $4,411.4
The purchase price represented a considerable premium to Ariba’s As of
stock price one-day prior (37%) to the announcement and the 52- Balance Sheet 3/31/12 Implied Purchase Multiples
week average (44%), as well as implied attractive multiples of both
Cash $196.4 Revenue 8.8x
revenue and EBITDA, as illustrated to the right.
Debt $0.0 EBITDA NM
The acquisition of Ariba will expand SAP’s portfolio of cloud-based
applications, further increasing its presence in the cloud. Net Debt ($196.4) Net Income NM
Quest Software, Inc. (NasdaqGS:QSFT) Transaction Details
Quest Software, Inc. (NasdaqGS:QSFT) is an award winning Financial Profile Transaction Analysis
developer of enterprise system management software that provides ($ in millions)
LTM Purchase Price (Equity) $2,382.9
solutions for common IT challenges. Income Statement 3/31/12
Total Rights/Warrants/Options $149.0
On June 30, 2012 Dell, Inc. (NasdaqGS:DELL) announced that it had Revenue $881.5 Minority Interest $34.9
entered into a definitive agreement to acquire Quest Software for
approximately $2.4 billion, which represents an offer price of EBITDA $160.3 Net Assumed Liabilities ($159.1)
$27.50 per share of common stock. Net Income $43.3 Implied Enterprise Value $2,407.7
The offer from Dell was deemed by Quest Software’s Board of As of
Directors to represent a superior offer to the Company’s previously Balance Sheet 3/31/12 Implied Purchase Multiples
announced merger agreement with Insight Venture Partners.
Cash $263.2 Revenue 2.7x
The proposed combination will add critical components to Dell’s
Debt $104.1 EBITDA 15.0x
enterprise software solutions, including systems management,
security and data protection. Net Debt ($159.1) Net Income NM
HYDE PARK CAPITAL 7
Investment Banking | Mergers & Acquisitions | Capital Raising
8. M&A Activity by Technology Sector
U.S. Middle Market M&A Activity by Technology Sector: VOLUME % Change
53
Software 36%
34
49
Internet 16%
41
26
IT Services 73%
7
43
Technology Hardware 19%
35
0 10 20 30 40 50 60
1H 2011 1H 2012
U.S. Middle Market M&A Activity by Technology Sector: VALUE % Change
($ in millions)
$9.6
Software 51%
$4.7
$3.9
Internet 13%
$4.4
$2.8
IT Services 79%
$0.6
$6.1 2%
Technology Hardware
$6.0
$0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0
1H 2011 1H 2012
Source: S&P Capital IQ (includes all closed deals with disclosed deal value between $10 million and $1 billion)
HYDE PARK CAPITAL 8
Investment Banking | Mergers & Acquisitions | Capital Raising
9. Private Equity Activity – Technology
Commentary Select Private Equity Transactions (Q2 2012)
($ in millions) Transaction
With financing markets cooperating, financial sponsors remained Announced Date Target Buyer Industry Value
active investors across all sectors of the Technology industry in the 06/27/12 Active Internet Technologies, LLC Spectrum Equity Investors Internet $55
2nd quarter of 2012, as shown in the table on the right. 06/14/12 Bullhorn, Inc. Vista Equity Partners Internet NA
06/06/12 Plex Systems, Inc. Francisco Partners Management Internet NA
Several notable private equity backed transactions were 05/30/12 Infogix, Inc. H.I.G. Capital Software NA
announced during Q2 2012 including GTCR’s acquisition of CAMP 05/10/12 Spectralink Corp. Sun Capital Partners Technology Hardware $114
Systems International, Inc., a provider of aircraft maintenance
05/10/12 CAMP Systems International, Inc. GTCR Internet $675
tracking software, for $675 million; and The Gores Group buyout
05/03/12 Ajubeo, LLC Grey Mountain Partners Internet NA
of Elo TouchSystems, Inc. a developer and manufacturer of touch
screen products, for $380 million. 04/18/12 Help/Systems, LLC Summit Partners Software NA
Openwave Systems, Inc. (Mediation and
04/16/12 Marlin Equity Partners Internet $50
Messaging Product Businesses)
During the 1st half of 2012 financial sponsors participated in 10% 04/10/12 Elo TouchSystems, Inc. The Gores Group Technology Hardware $380
of completed deals and accounted for 15% of total transaction 04/10/12 Network Instruments, LLC Thoma Bravo Technology Hardware NA
value, which is consistent with 1H 2011. 04/05/12 Legacy.com, Inc. Great Hill Partners Internet NA
04/02/12 MSDSonline, Inc. ICG Group Internet $48
Financial Sponsors vs. Strategic Buyers Select Private Placements (Q2 2012)
($ in millions) Transaction
Announced Date Target Lead Investor(s) Industry Value
06/29/12 DocuSign, Inc. Kleiner, Perkins, Caufield & Byers Internet $56
Total Transaction Value ($ in billions)
06/28/12 Rocket Fuel, Inc. Northgate Capital Group Internet $50
Total Transaction Volume
06/20/12 Bromium, Inc. Highland Capital Partners Software $27
06/12/12 Message Systems, Inc. LLR Partners Software $32
06/07/12 GoHealth, LLC Norwest Equity Partners Internet $50
06/05/12 Donuts, Inc. Austin Ventures Internet $100
05/23/12 10gen, Inc. New Enterprise Associates Internet $50
Goldman Sachs Group (Merchant
05/21/12 AnchorFree, Inc. Internet $52
Banking Division)
05/17/12 Pinterest Bessemer Venture Partners Internet $100
05/16/12 Fotolia, LLC Kohlberg Kravis Roberts & Co. Internet $150
Accel Management Co, Inc. /
05/15/12 Qualtrics, Inc. Internet $70
Sequoia Capital
05/11/12 Utopia, Inc. FTV Capital IT Services $50
Financial Sponsor Strategic Buyer Financial Sponsor Strategic Buyer
04/19/12 Evernote Corp. MeriTech Capital Partners Internet $70
Source: S&P Capital IQ (includes all closed deals with disclosed deal value between $10 million and $1 billion)
HYDE PARK CAPITAL 9
Investment Banking | Mergers & Acquisitions | Capital Raising
10. Industry Sector Overview – Recent Stock Price Performance
Commentary Enterprise Software
The charts included on the following pages detail the recent stock 130%
price performance by sector for the leading public companies
within the Technology industry for the 12-month period ended 120%
June 30, 2012. The shaded section is the most recent 3-month
110%
period (Q2). 3.1%
100%
The Technology Hardware and Internet indices delivered the
strongest gains in the Technology industry for the 12-month 90% 5.4%
period ending June 30, 2012, increasing 19.8% and 9.3%,
respectively. 80%
70%
Due to mixed earnings reports by public companies in the
Technology industry and increased volatility in the market, all 60%
sector indices of the Technology industry decreased during Q2 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12
2012. S&P 500 Enterprise Software
Software-as-a-Service (SaaS) Infrastructure Software
130% 130%
120% 120%
110% 110%
3.1% 3.1%
100% 100%
0.3%
90% 90% 5.8%
80% 80%
70% 70%
60% 60%
Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12
S&P 500 Software-as-a-Service (SaaS) S&P 500 Infastructure Software
Source: S&P Capital IQ
HYDE PARK CAPITAL 10
Investment Banking | Mergers & Acquisitions | Capital Raising
11. Industry Sector Overview – Recent Stock Price Performance
Informatics & Data Services Internet
130% 130%
120% 120%
9.3%
110% 110%
3.1%
100% 100% 3.1%
90% 6.0% 90%
80% 80%
70% 70%
60% 60%
Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12
S&P 500 Inormatics & Data Services S&P 500 Internet
IT Services Technology Hardware
130% 140%
120% 130%
120% 19.8%
110%
3.1% 110%
100%
3.1%
100%
90%
7.4%
90%
80%
80%
70% 70%
60% 60%
Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12
S&P 500 IT Services S&P 500 Tehnology Hardware
Source: S&P Capital IQ
HYDE PARK CAPITAL 11
Investment Banking | Mergers & Acquisitions | Capital Raising
12. Industry Sector Overview – Public Company Analysis
Enterprise Software
($ in millions, except per share)
Enterprise Resource Planning
Enterprise Value /
Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM
Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA
Oracle Corp. ORCL $29.70 87.0% $151,322 $137,519 $37,121 $29,263 $16,050 78.8% 43.2% 3.7x 8.6x
SAP AG DB:SAP $59.36 85.3% $70,465 $71,052 $19,214 $13,758 $6,882 71.6% 35.8% 3.7x 10.3x
Sage Group plc LSE:SGE $4.35 88.5% $5,747 $5,552 $2,138 $2,004 $620 93.7% 29.0% 2.6x 9.0x
NetSuite, Inc. N $54.77 99.9% $3,719 $3,568 $252 $177 ($17) 70.0% (6.8%) 14.1x* NM
Deltek, Inc. PROJ $11.59 99.6% $755 $871 $343 $220 $50 64.0% 14.6% 2.5x 17.3x
Exact Holding NV ENXTAM:EXACT $21.86 81.0% $499 $434 $280 $111 $64 39.6% 22.9% 1.5x 6.8x
Average 90.2% $38,751 $36,499 $9,891 $7,589 $3,942 69.6% 23.1% 2.8x 10.4x
Median 87.8% $4,733 $4,560 $1,240 $1,112 $342 70.8% 26.0% 2.6x 9.0x
Supply/Demand Chain Management
Enterprise Value /
Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM
Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA
Ariba, Inc. ARBA $44.76 98.4% $4,191 $3,995 $502 $330 $41 65.8% 8.1% 8.0x NM
JDA Software Group, Inc. JDAS $29.69 85.2% $1,270 $1,257 $672 $406 $165 60.4% 24.5% 1.9x 7.6x
Manhattan Associates, Inc. MANH $45.71 89.6% $966 $869 $349 $204 $76 58.6% 21.7% 2.5x 11.5x
SciQuest, Inc. SQI $17.96 99.1% $405 $345 $55 $41 $7 73.4% 12.1% 6.2x 51.8x
Average 93.1% $1,708 $1,617 $394 $245 $72 64.6% 16.6% 4.6x 23.6x
Median 94.0% $1,118 $1,063 $425 $267 $58 63.1% 16.9% 4.4x 11.5x
Customer Relationship Management
Enterprise Value /
Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM
Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA
Oracle Corp. ORCL $29.70 87.0% $151,322 $137,519 $37,121 $29,263 $16,050 78.8% 43.2% 3.7x 8.6x
SAP AG DB:SAP $59.36 85.3% $70,465 $71,052 $19,214 $13,758 $6,882 71.6% 35.8% 3.7x 10.3x
Salesforce.com CRM $138.26 83.9% $18,869 $18,709 $2,458 $1,920 $106 78.1% 4.3% 7.6x NM
Amdocs, Ltd. DOX $29.72 91.8% $5,266 $4,371 $3,230 $1,147 $596 35.5% 18.5% 1.4x 7.3x
NetSuite, Inc. N $54.77 99.9% $3,719 $3,568 $252 $177 ($17) 70.0% (6.8%) 14.1x* NM
Comverse Technology, Inc. CMVT $5.82 74.6% $1,230 $1,463 $1,589 $844 $145 53.1% 9.2% 0.9x 10.1x
Pegasystems, Inc. PEGA $32.98 69.4% $1,300 $1,212 $425 $259 $27 60.9% 6.5% 2.8x NM
CSG Systems International, Inc. CSGS $17.28 88.2% $568 $685 $737 $372 $165 50.5% 22.4% 0.9x 4.1x
Average 85.0% $31,593 $29,822 $8,128 $5,967 $2,994 62.3% 16.6% 3.0x 8.1x
Source: S&P Capital IQ *Excluded from average and median calculation. Median 86.2% $4,493 $3,969 $2,023 $995 $155 65.5% 13.8% 2.8x 8.6x
HYDE PARK CAPITAL 12
Investment Banking | Mergers & Acquisitions | Capital Raising
13. Industry Sector Overview – Public Company Analysis
Enterprise Software
($ in millions, except per share)
Human Capital Management
Enterprise Value /
Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM
Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA
Concur Technologies, Inc. CNQR $68.10 98.3% $3,687 $3,457 $393 $282 $53 71.6% 13.6% 8.8x 64.8x
The Ultimate Software Group, Inc. ULTI $88.93 97.3% $2,481 $2,420 $283 $160 $28 56.4% 9.9% 8.6x 86.7x
Cornerstone OnDemand, Inc. CSOD $23.81 100.0% $1,156 $1,074 $81 $58 ($21) 71.0% (25.5%) 13.2x NM
Kenexa Corp. KNXA $29.03 85.6% $771 $722 $301 $180 $26 59.7% 8.5% 2.4x 28.2x
Vocus, Inc. VOCS $18.60 55.2% $352 $404 $138 $111 ($4) 80.3% (3.1%) 2.9x NM
Average 87.3% $1,689 $1,615 $239 $158 $16 67.8% 0.7% 7.2x 59.9x
Median 97.3% $1,156 $1,074 $283 $160 $26 71.0% 8.5% 8.6x 64.8x
Content Management
Enterprise Value /
Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM
Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA
Adobe Systems, Inc. ADBE $32.37 93.1% $16,192 $14,704 $4,335 $3,875 $1,492 89.4% 34.4% 3.4x 9.9x
Open Text Corp. OTEX $49.90 69.0% $2,928 $3,024 $1,187 $861 $325 72.5% 27.4% 2.5x 9.3x
Synchronoss Technologies, Inc. SNCR $18.47 47.5% $717 $596 $241 $130 $40 54.1% 16.7% 2.5x 14.8x
LogMeIn, Inc. LOGM $30.52 68.4% $779 $586 $125 $114 $16 90.8% 12.8% 4.7x 36.5x
Average 69.5% $5,154 $4,727 $1,472 $1,245 $468 76.7% 22.8% 3.3x 17.6x
Median 68.7% $1,853 $1,810 $714 $495 $183 80.9% 22.0% 3.0x 12.3x
Business Intelligence/Analytics
Enterprise Value /
Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM
Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA
Teradata Corp. TDC $72.01 90.1% $12,375 $11,683 $2,469 $1,359 $566 55.0% 22.9% 4.7x 20.6x
TIBCO Software, Inc. TIBX $29.92 86.3% $5,126 $5,034 $992 $724 $225 73.0% 22.7% 5.1x 22.3x
Informatica Corp. INFA $42.36 67.9% $4,772 $4,206 $812 $685 $183 84.4% 22.5% 5.2x 23.0x
Qlik Technologies, Inc. QLIK $22.12 62.1% $1,923 $1,717 $337 $301 $21 89.5% 6.1% 5.1x NM
MicroStrategy, Inc. MSTR $129.86 72.7% $1,439 $1,227 $585 $437 $28 74.7% 4.7% 2.1x NM
Average 75.8% $5,127 $4,773 $1,039 $701 $205 75.3% 15.8% 4.4x 22.0x
Median 72.7% $4,772 $4,206 $812 $685 $183 74.7% 22.5% 5.1x 22.3x
Source: S&P Capital IQ
HYDE PARK CAPITAL 13
Investment Banking | Mergers & Acquisitions | Capital Raising
14. Industry Sector Overview – Public Company Analysis
Software-as-a-Service (SaaS)
($ in millions, except per share) Enterprise Value /
Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM
Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA
Salesforce.com CRM $138.26 83.9% $18,869 $18,709 $2,458 $1,920 $106 78.1% 4.3% 7.6x NM
NetSuite, Inc. N $54.77 99.9% $3,719 $3,568 $252 $177 ($17) 70.0% (6.8%) 14.1x* NM
athenahealth, Inc. ATHN $79.17 90.8% $2,903 $2,748 $376 $230 $50 61.1% 13.4% 7.3x 54.6x
The Ultimate Software Group, Inc. ULTI $88.93 97.3% $2,481 $2,420 $283 $160 $28 56.4% 9.9% 8.6x NM
Compuware Corp. CPWR $9.30 90.1% $2,065 $2,018 $1,006 $666 $176 66.2% 17.5% 2.0x 11.4x
Blackbaud, Inc. BLKB $25.67 75.5% $1,138 $1,092 $379 $217 $68 57.2% 18.0% 2.9x 16.0x
Cornerstone OnDemand, Inc. CSOD $23.81 100.0% $1,156 $1,074 $81 $58 ($21) 71.0% (25.5%) 13.2x* NM
OpenTable, Inc. OPEN $45.01 49.5% $1,085 $1,027 $145 $105 $43 72.2% 29.8% 7.1x 23.7x
Kenexa Corp. KNXA $29.03 85.6% $771 $722 $301 $180 $26 59.7% 8.5% 2.4x 28.2x
Synchronoss Technologies, Inc. SNCR $18.47 47.5% $717 $596 $241 $130 $40 54.1% 16.7% 2.5x 14.8x
LogMeIn, Inc. LOGM $30.52 68.4% $779 $586 $125 $114 $16 90.8% 12.8% 4.7x 36.5x
Demandware, Inc. DWRE $23.69 74.1% $548 $443 $61 $40 $1 66.0% 2.3% 7.3x NM
Constant Contact, Inc. CTCT $17.86 55.5% $556 $413 $224 $160 $24 71.3% 10.9% 1.8x 16.9x
Vocus, Inc. VOCS $18.60 55.2% $352 $404 $138 $111 ($4) 80.3% (3.1%) 2.9x NM
Bazaarvoice, Inc. BV $18.20 86.3% $481 $355 $106 $70 ($21) 65.7% (19.4%) 3.3x NM
SciQuest, Inc. SQI $17.96 99.1% $405 $345 $55 $41 $7 73.4% 12.1% 6.2x 51.8x
Average 78.7% $2,376 $2,282 $389 $274 $33 68.4% 6.3% 4.8x 28.2x
Median 84.8% $932 $874 $233 $145 $25 68.1% 10.4% 4.0x 23.7x
Source: S&P Capital IQ *Excluded from average and median calculation.
HYDE PARK CAPITAL 14
Investment Banking | Mergers & Acquisitions | Capital Raising
15. Industry Sector Overview – Public Company Analysis
Infrastructure Software
($ in millions, except per share)
Enterprise IT Management
Enterprise Value /
Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM
Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA
VMware, Inc. VMW $91.04 76.6% $39,490 $34,593 $4,180 $3,511 $1,075 84.0% 25.7% 8.3x 32.2x
Citrix Systems, Inc. CTXS $83.94 95.4% $15,895 $14,597 $2,389 $2,121 $592 88.8% 24.8% 6.1x 24.7x
CA Technologies CA $27.09 96.8% $13,193 $11,943 $4,814 $4,174 $1,729 86.7% 35.9% 2.5x 6.9x
Red Hat, Inc. RHT $56.48 90.0% $11,091 $10,272 $1,183 $1,001 $262 84.6% 22.1% 8.7x 39.2x
BMC Software, Inc. BMC $42.68 75.5% $7,375 $6,636 $2,172 $1,603 $675 73.8% 31.1% 3.1x 9.8x
TIBCO Software, Inc. TIBX $29.92 86.3% $5,126 $5,034 $992 $724 $225 73.0% 22.7% 5.1x 22.3x
SolarWinds, Inc. SWI $43.56 89.6% $3,273 $3,090 $233 $218 $114 93.4% 48.7% 13.2x* 27.2x
Quest Software, Inc. QSFT $27.81 99.4% $2,405 $2,281 $881 $780 $160 88.5% 18.2% 2.6x 14.2x
Compuware Corp. CPWR $9.30 90.1% $2,065 $2,018 $1,006 $666 $176 66.2% 17.5% 2.0x 11.4x
Pegasystems, Inc. PEGA $32.98 69.4% $1,300 $1,212 $425 $259 $27 60.9% 6.5% 2.8x NM
Progress Software Corp. PRGS $20.87 79.4% $1,349 $1,021 $504 $415 $95 82.3% 18.8% 2.0x 10.8x
Average 86.2% $9,324 $8,427 $1,707 $1,407 $466 80.2% 24.7% 4.3x 19.9x
Median 89.6% $5,126 $5,034 $1,006 $780 $225 84.0% 22.7% 3.0x 18.3x
Data Storage
Enterprise Value /
Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM
Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA
EMC Corp. EMC $25.63 85.4% $56,771 $53,237 $20,494 $12,649 $4,850 61.7% 23.7% 2.6x 11.0x
Teradata Corp. TDC $72.01 90.1% $12,375 $11,683 $2,469 $1,359 $566 55.0% 22.9% 4.7x 20.6x
Iron Mountain, Inc. IRM $32.96 92.1% $6,219 $9,503 $3,015 $1,767 $934 58.6% 31.0% 3.2x 10.2x
NetApp, Inc. NTAP $31.82 58.3% $12,228 $8,095 $6,233 $3,713 $940 59.6% 15.1% 1.3x 8.6x
CommVault Systems, Inc. CVLT $49.57 89.3% $2,340 $2,040 $407 $353 $54 86.9% 13.2% 5.0x 37.9x
Average 83.1% $17,987 $16,911 $6,524 $3,968 $1,469 64.4% 21.2% 3.4x 17.7x
Median 89.3% $12,228 $9,503 $3,015 $1,767 $934 59.6% 22.9% 3.2x 11.0x
Source: S&P Capital IQ *Excluded from average and median calculation.
HYDE PARK CAPITAL 15
Investment Banking | Mergers & Acquisitions | Capital Raising
16. Industry Sector Overview – Public Company Analysis
Infrastructure Software
($ in millions, except per share)
Security
Enterprise Value /
Closing Price % of 52 Equity Enterprise LTM LTM Margins LTM
Company Ticker 6/29/12 Week High Value Value Revenue Gross Profit EBITDA Gross Profit EBITDA Revenue EBITDA
Symantec Corp. SYMC $14.61 73.1% $10,928 $9,834 $6,730 $5,739 $1,797 85.3% 26.7% 1.5x 5.5x
Check Point Software Technologies, Ltd. CHKP $49.59 76.3% $10,525 $9,154 $1,307 $1,156 $739 88.4% 56.6% 7.0x 12.4x
VeriSign, Inc. VRSN $43.57 99.0% $7,172 $6,479 $796 $631 $427 79.2% 53.6% 8.1x 15.2x
Fortinet, Inc. FTNT $23.22 80.6% $3,820 $3,392 $458 $336 $98 73.5% 21.4% 7.4x 34.6x
Trend Micro, Inc. TSE:4704 $29.26 81.0% $3,854 $2,568 $1,153 $940 $399 81.5% 34.6% 2.2x 6.4x
Sourcefire, Inc. FIRE $51.40 86.2% $1,533 $1,383 $181 $140 $15 77.1% 8.5% 7.6x NM
Websense, Inc. WBSN $18.73 67.3% $745 $745 $365 $306 $72 83.8% 19.7% 2.0x 10.3x
Average 82.8% $3,425 $2,913 $591 $471 $202 79.0% 27.6% 5.5x 16.6x
Median 81.0% $3,820 $2,568 $458 $336 $98 79.2% 21.4% 7.4x 12.8x
Source: S&P Capital IQ
HYDE PARK CAPITAL 16
Investment Banking | Mergers & Acquisitions | Capital Raising